Intel's grim news comes as technology companies are feeling the full brunt of the global economic crisis, as demand for software and hardware slows.

Intel also said it will take a much higher loss on other equity investments than it expected. The company will note a non-cash charge in the fourth quarter of $950 million related to its investment in Clearwire, which has a WiMax mobile broadband network.

Intel was one of five companies that invested $3.2 billion last year in Clearwire along with Google, Comcast, Time Warner Cable and Bright House Networks.

Clearwire's stock hit a peak of more than $17 per share in February 2008, but has steadily fallen. It traded Wednesday around $5.09 a share.

Overall, Intel expects to lose between $1.1 billion and $1.2 billion on equity investments rather than the $50 million it previously expected to lose.

Intel said it expects to have spent about $2.6 billion on research and development rather than $2.8 billion. Restructuring and asset impairment charges will be around $250 million, the same as the company's previous guidance.

PCW Evaluation Team

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

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